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As frustrated as we all are people need to appreciate what it takes to build and run a business. An oil and gas business is about as difficult, complex and slow moving as it gets. And to compare NUOG to BP.... do you know how many people are involved in creating a set of results for a company like BP, the cost involved and the number of eyes on it. And the fact that 95% of what's produced will never even get read by 99% of users. NUOG have a small number of people who are also focused on many other things, will have a small group of people going through every detail with a fine tooth comb, and have to take into account that there are more likely to be material events that can be associated to the delivery of results.
To throw money in a trading or investment account and expect it to multiply overnight and sit behind a keyboard bashing the company when it doesn't, is simply ridiculous. Yes we want the company to set professional standards, but I am afraid that giving way to every shareholders demands is the complete opposite to that, and we have already seen a remarkable change in the professionalism of NUOG under Graham.
What we all should be here for and concerned about is progress with projects and delivery of deals, and there is clear eveidence that things are moving forward here. Judge the company on how this pans out over the rest of this year, not by the timing of announcements of annual results, or the delays in expectation of making you rich.
Royscot - How pathetic. Any company reserves the right to deliver their results at a time they believe to be most appropriate. Until such a time as they become late... there is no issue.
There are more important things to consider than whether the timing of the delivery of results meets your expectation. Personally I am more interested in the content and the progress of the business towards a deal... not whether they meet Royscot's or any other PIs desire to have seen them this morning.
Regarding MFs projects this is from last set of accounts... sounds like material progress on a number of fronts.... people just don’t seem to appreciate it takes time to build a company and time to achieve success... can’t just throw a few million at it and magic up a deal
We continue to negotiate a number of specific opportunities at different stages of the 'commercialisation cycle'; we have submitted proposals which are being considered and we are hopeful that we will be able to update shareholders with positive developments in due course. Our marginal field proposals span a range from larger scale opportunities to more standard repeatable and smaller projects, resources are being applied proportionally as required. We are building a team to speed delivery and as always, our objective remains the identification and acquisition of projects in the 'marginal, stranded' domain with the most appropriate revenue stream and efficient use of capital to maximise returns.
MFDevCo has made tangible progress in a number of ways this year. Firstly, negotiations have continued on a number of larger scale and undervalued opportunities with effort directed to complete the key tasks required to meet MFDevCo's objectives and those of the counterparty. The technical evaluation including operating plans has been satisfactorily concluded, with the assistance of consortium members, and are being integrated with financing requirements. The larger the size and value of the project, the longer it takes to conclude the negotiations and noting the 'arbitrage' element that characterises the opportunities we target, shareholders will, I am sure, understand the complexities involved to conclude a deal. Significant project finance will be required to unlock these opportunities but there are innovative means, analagous to shipping finance, in which this can be done.
I think there will be other SPVs with other partners for other types of project and maybe for individual projects.... this one is clearly a financing vehicle for Gas To Wire projects.. enables different investors into different projects, which was always the plan from as far as I knew about NUOG.
An interesting read.... elecricity demand is fast growing, and coal output is increasing... simple fact is the coal share of production is far too high... gas to wire is a compromise between cleaner production and ability to maximise discovered reserves.
https://www.iea.org/geco/electricity/
yes exactly... electricity as an output... it is bang on point with the future of the industry. Cleaner energy, cost saving, direct to market, cheaper production with lower transportation, deals with demand issues, delays decommissioning expense, collaboration, risk sharing, lower capex, lower opex.
There’s a good point in there LT..... maybe there is another way of doing things if targeting only one project, but their ambition is a pipeline of projects with a plethora of opportunities out there.... the other question is who might be interested as other investors or an eventual farm down of Marnavi interest...?
One other thing that makes this stand out too..... Oil and Gas has a demand limit, which is reflected in the oil or gas price..... with electricity as an output there is no ceiling when it comes to demand, because the global goal is for cleaner energy, replacing traditional more polluting sources. And of course electricity as a power source will only grow and grow, whilst we seek alternate energy sources to oil.
The 30% ownership in the spv which is a financing vehicle isn’t the full story about MFDeVCo interest in the project.....
What about MFDevCo being remunerated for projects signed
Services contract for managing projects....
There is a difference between equity in the financing vehicle and destination of the profits.... it’s quite complex I have to say... but it is incorrect to say that MFDevCo will only benefit from 30% of a project
Some short term funding in MFDevCo to reduce working capital need which could see them through the project phase through seed capital
“ The SPV will remunerate MFDevCo for any projects accepted;” sounds like an upfront payment on signing a project which would mean no placing.....
2 immediate GTW projects....
This is a good start starting to answer some of the questions and gathering momentum to project delivery
To be fair, they are a bit stuck between a rock and a hard place on this.
They have been criticised for being over bullish and under delivering. Everything they do say most people come out with comments that only material news will do. People are asking for an idea on timeframes and others are saying don't give timeframes, just get on and deliver.
In general, NUOG have been a lot more engaging with shareholders than most other companies of this size would be, I prefer the current approach in not letting on any anticipated news to the old regime of priviledged leaks.
I think people need to be more specific when they say "comms need to improve", because what they really want to hear is value adding price sensitive information, which we know they can't give until an RNS comes.
What we want to hear, is how many projects are they working on, when will they be delivered, and what is required to complete. Oh and what's the plan with cash? The fact is without these pieces of info, people will just say comms is crap. But we know they can't give out this info without properly addressing the market via appropriate RNS.
The main area where i really do feel they could be doing more and missing a trick is Gas To Wire. As far as I am aware, we are the only opportunity to invest in GTW for UK stocks. I do feel there is an opportunity to generate interest with this.
But on the other hand, NUOG's past failures and the extended time to deliver has created a scenario where the market just needs something more concrete. It's disappointing that there has been nothing to support shareholder wealth in the absence of a project.
We all want that material news, and the thing that remains constant is that when this happens there will be a large re rate. The thing that is more apparent is that we can be thinking about a multi asset portfolio and not just one asset.
"Shell suggests 30 per cent of its business could be in electricity by the mid-2030s. It does not have long to master those new skills."
A good article in the FT. There has been a fair amount of coverage with recent developments of Shell looking at direct electricity supply as part of their future business strategy.
Desire to move away from oil as a fuel, desire for cleaner energy. Move for resource companies to supply electricity as an output rather than gas or oil.
This shows that MFDevCo's GTW strategy is bang on point. Not to mention it provides a solution for late life or undeveloped north sea resources, defers decommissioning costs which is a very big problem in the north sea, and deals with a supply issue which the intermittence of wind cannot satisfy alone.
As far as I am aware, NUOG is the only opportunity for UK PIs to invest in Gas To Wire Technology.
https://www.ft.com/content/9cc1cb48-4b61-11e9-bbc9-6917dce3dc62
Wowbat - something tells me this individual is well practiced in setting up new accounts... no effort at all.
Yes, most of us are significantly down and very frustrated at the share price.... the company are not blameless, with the hangover from false promises and continued delays in delivering the proof of concept. The funds is clearly one of the factors that is driving fear.... but what company in their right mind alow the share price to drop nearly 50%, and risk losing their authority to issue shares through the AGM, when they could have placed before xmas if they needed to?
Unfortunately PIs are at the bottom of the food chain, and the course of events has not done us holders any favours so far. But.... i have belief that his will turn on a sixpence and grow into a large nest egg. I think anyone can see that when they do deliver this will yield high returns... when there is something of high potential value, there will be those that want to get it as cheap as possible. If there wasn't anything of value people wouldn't care to comment.
Fear, manipulation, greed, scaremongering
One thing is for sure... the fundamentals and prospect of the company is not reflective in this share price.
Cobra - to address one of your comments....
"However, there also comes a point where they have to be judged on what has been delivered rather than the constant promise of big things to come"
I am doing just that... I am judging them on what HAS been delivered.... not by what has NOT been delivered, which is what most people are doing.....
Yes they have given out promises in the past that have disappointed shareholders, and those that just wanted to get rich over night.... but those promises are still there and some.... There is more opportunity and more evidence than ever, and we are closer than ever. It's the time lines that are up for debate.
I don't fully agree with the way they have handled things over the last 18 months, but i do 100% believe in their ability to turn this opportunity into a portfolio of revenue generating projects. For me its not about when the first one lands, it's about when we have 5-6 projects.
Regarding the millions they have spent, i wonder how much of that you can break down to past enegi failures and GHs? There is no doubt there have been failures in the past which have lost a lot of money..... but they didn't give up... they kept the company going, at some cost for sure, but they have now got a strategy that significantly reduces risk, significantly reduces capital requirements, and answers a lot of the natural resource problems that are current and will be with us over the next 100 years and beyond. I personally draw a line under enegi and look at the new era alone. I personally wasn't invested during that past period therefore I can only judge by what has happened since.
And now of course we have an even newer era with GS replacing AM. Are you going to hold Graham to account for past failures?
The beauty of our consortium approach is that they have the ability to handle multiple irons in multiple fires on a little budget. Add in the fact they appear to have build a team befitting of a company several times bigger than us, indicates the future direction.
Cobra.... if you do some research on the average lead time of an O&G project and the average cost to get them off the ground, the money spent here will look cheap if they pull off creating a multi asset portfolio, which by all latests communications is what they are promising.
Regarding the flavour of the month comment, it might sound like that in the past, but they are clear in their strategy that they are looking at all means to monetise stranded or marginal fields. To grow a larger portfolio, having different types of solutions increases your pool of possible projects dramatically. I believe they probably have a lot more opportunities under review than even the most supportive of holders might think. But it's a bit of a boy who cried wolf situation here, with lots of false starts. But there is more evidence of things progressing now than there ever has been, and is not just hear say or chinese whispers.
I can't argue that the related party structure complicates things and raises questions about the use of funds.... but nobody will work for free.... nobody has ever offered up an opportunity to invest on a plate without a benefit to themselves.
I think people are really missing the point here, and are judging this based on the anticipation of 1 project, but whilst they keep us waiting for the first project, they are building a company that could grow into one of AIM's great success stories. They could complete multiple projects in a short space of time. I'm sure people will get caught out selling too early, only to see more success.
Look a few years down the line.... how many GTW projects could they have, Brazil, H&D, GHs maybe they could even fund themselves and crack on. That's not mentioning other large projects that they have hinted at, and potential for further onshore.
GTW appears to be a fantastic investment opportunity, that fits a lot of the global energy drives of the next 30 years..... where else can PIs invest in GTW? MFDevCo are potentially going to lead growth in this market. I don't know why they are not shouting this from the roof tops, but there is something here that can yield great value for us.
I believe at some point in the not too distant future, Nu Oil will be relaunched putting to bed a lot of past failures, and looking forward to a long sustained period of shareholder value growth.
KnightRider... just seen your other 2 posts whilst i was typing mine... a couple more points....
I think the new structure of NUOG is a big clue as to the future direction. It was clear from the AGM that Graham is now calling the shots, MFDevCo and NUOG, whatever the paperwork at companies house says. Perhaps the consolidation of entities is close, i don't know, but clearly there has to been some alignment going forward. I certainly don't think Graham is sat there just trying to sort GHs out and I don't think at 72 Minty can or should be thinking about ongoing future management of what can become quite a busy company very quickly.
Secondly RE Ivo...... looking at his skill set, he is there to manage active projects..... he doesn't appear to be a corporate or a finance guy. In terms of getting the Brazil deal done and over the line, I would think it's more to do with negotiating and finance, which I am pretty sure the team in Manchester are driving. I would think Ivo is more operationally focused and ready to go once a project is signed.
I think MFDevCo are involved in a lot more opportunities than any of us are aware of personally.
Graham has been very complimentary of the progress made by the existing team. I don't think it is the case that they needed Graham to come in in order to complete on any deals, they have been working on them for some time, and i think the delay in getting them over the line is more reflective of the industry rather than NUOG/MFdevCo's ability to complete a deal. I am not saying they have excelled in this, just I think they had already positioned themselves close to finalising at least 2-3 projects even without Graham on board.
Graham is clearly a great addition to the team and a great asset, and he may well help get things over the line. But if we announce 3 deals tomorrow, I don't think it's fair to say Graham has come in and done the job, and he's our saviour, because a lot of work has gone into making these deals pre Graham. I think he is a much better front man when we do finally get to talk about projects and I can see him being the one to take this forward and turn it into a substantial company.
For me the urgency of getting Graham in was to reduce the control within NUOG, to ensure shareholders interest are more fairly represented. I believe there is a lot of value to be unlocked in the company, and it is important that shareholders interests are represented and retained equitably, especially at such an important time where I strongly believe a large re-rate is upon us. Clearly there was a need for a new Chairman which would have been a long time in coming. I am sure Alan would have wanted the first project to be announced under his chair and fully credited to him, and I have a suspicion he wanted to retain control in order to manufacture a greater reward for himself.
So I don't think in any way the timing of news can be assumed to be further down the line because of Graham's appointment and his need to get his feet under the table. Graham's appointment clearly coincides with Minty's resignation on his tenure at the AGM, at the age of 72 it's clearly a good time for new management, so don't be fooled into thinking that Graham needs a great deal of time to make something happen.
What do you mean do "we" (really we) have a wind farm operator in the consortium??? There's no such thing as needing a wind farm operator as part of the consortium. We are not building windfarms, we are looking to take advantage of the expanding offshore grid that is a priority investment in the north sea.
We need assets close to the grid, the bigger the grid the more stranded assets become potential opportunities.
https://www.msp-platform.eu/practices/north-seas-countries-offshore-grid-initiative-nscogi